Construction work oni the new Kelso High School is now likely to be delayed until 2016..
Scottish Borders Council (SBC) had hoped to start work this summer.
A spokesman said that while progress continued to be made, construction work was now “likely to be delayed” until 2016.
It comes as a result of a European ruling affecting some investment projects, including the Scottish Futures Trust’s Schools for the Future programme, which is fully funding the new Kelso High School.
Discussions continue between the Scottish Futures Trust and the Office of National Statistics to resolve the issue. SBC says it is being kept informed of the progress of these discussions and will continue to update the Kelso community on the project as it progresses.
The school at Nethershot on Angraflat Road will include new grass and synthetic sports pitches as well as community facilities.